Global Inflation Synchronization

Global Inflation Synchronization

The paper studies the extent of global inflation synchronization using a dynamic factor model in a large set of countries over a half century. The authors' methodology allows them to account for differences across groups of countries (advanced...

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Main Authors: Ha, Jongrim, Kose, M. Ayhan, Ohnsorge, Franziska L.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
INFLATION
SYNCHRONIZATION
DYNAMIC FACTOR MODEL
EMERGING MARKET ECONOMIES
CONSUMER PRICE INDEX
Online Access:http://documents.worldbank.org/curated/en/733211551994244422/Global-Inflation-Synchronization
http://hdl.handle.net/10986/31394
id okr-10986-31394
recordtype oai_dc
spelling okr-10986-313942022-09-19T12:16:55Z Global Inflation Synchronization Ha, Jongrim Kose, M. Ayhan Ohnsorge, Franziska L. INFLATION SYNCHRONIZATION DYNAMIC FACTOR MODEL EMERGING MARKET ECONOMIES CONSUMER PRICE INDEX The paper studies the extent of global inflation synchronization using a dynamic factor model in a large set of countries over a half century. The authors' methodology allows them to account for differences across groups of countries (advanced economies and emerging market and developing economies) and to analyze commonalities in inflation synchronization across a wide range of inflation measures. The paper reports three major results. First, inflation movements have become increasingly synchronized internationally over time: a common global factor has accounted for about 22 percent of variation in national inflation rates since 2001. Second, inflation synchronization has also become more broad-based: while it was previously much more pronounced among advanced economies than among emerging market and developing economies, it has become substantial in both groups over the past two decades. In addition, inflation synchronization has become significant across all inflation measures since 2001, whereas it was previously prominent only for inflation measures that included mostly tradable goods. 2019-03-14T19:25:27Z 2019-03-14T19:25:27Z 2019-03 Working Paper http://documents.worldbank.org/curated/en/733211551994244422/Global-Inflation-Synchronization http://hdl.handle.net/10986/31394 English Policy Research Working Paper;No. 8768 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic INFLATION
SYNCHRONIZATION
DYNAMIC FACTOR MODEL
EMERGING MARKET ECONOMIES
CONSUMER PRICE INDEX
spellingShingle INFLATION
SYNCHRONIZATION
DYNAMIC FACTOR MODEL
EMERGING MARKET ECONOMIES
CONSUMER PRICE INDEX
Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska L.
Global Inflation Synchronization
relation Policy Research Working Paper;No. 8768
description The paper studies the extent of global inflation synchronization using a dynamic factor model in a large set of countries over a half century. The authors' methodology allows them to account for differences across groups of countries (advanced economies and emerging market and developing economies) and to analyze commonalities in inflation synchronization across a wide range of inflation measures. The paper reports three major results. First, inflation movements have become increasingly synchronized internationally over time: a common global factor has accounted for about 22 percent of variation in national inflation rates since 2001. Second, inflation synchronization has also become more broad-based: while it was previously much more pronounced among advanced economies than among emerging market and developing economies, it has become substantial in both groups over the past two decades. In addition, inflation synchronization has become significant across all inflation measures since 2001, whereas it was previously prominent only for inflation measures that included mostly tradable goods.
format Working Paper
author Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska L.
author_facet Ha, Jongrim
Kose, M. Ayhan
Ohnsorge, Franziska L.
author_sort Ha, Jongrim
title Global Inflation Synchronization
title_short Global Inflation Synchronization
title_full Global Inflation Synchronization
title_fullStr Global Inflation Synchronization
title_full_unstemmed Global Inflation Synchronization
title_sort global inflation synchronization
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/733211551994244422/Global-Inflation-Synchronization
http://hdl.handle.net/10986/31394
_version_ 1764474229995077632

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